Aarti Industries tanks 10% after PAT drops in Q2FY25 earnings; details

Shares of Aarti Industries plunged 9.99 per cent at Rs 427.30 per share on the BSE after the company’s net profit fell in its second quarter earnings for the financial year 2024-25 (Q2FY25). 

 

Aarti Industries reported a 42.85 per cent year-on-year decline in net profit for the September quarter, posting Rs 52 crore, compared to Rs 91 crore in the same period last year. The company’s revenue for the quarter stood at Rs 1,628 crore, reflecting an 11.96 per cent increase from Rs 1,454 crore in the previous year. 

 

Aarti Industries ’s earnings before interest, tax, depreciation, and amortisation (Ebitda) fell by 15.45 per cent year-on-year to Rs 197 crore, while Ebitda margins contracted by over 392 basis points to 12.1 per cent, down from 16.02 per cent in the same quarter last year. 

 

 

The company’s non-energy business saw a 22 per cent Y-o-Y growth and an 11 per cent Q-o-Q increase, driven by strong volume upticks across end applications such as Dyes, Pigments, and Polymer Additives, although Agrochemicals remained soft. However, pricing pressure continued to be a challenge, the company said in its investor presentation. 

 

In contrast, the energy business experienced a 1 per cent Y-o-Y decline and a 36 per cent Q-o-Q drop, largely due to a sharp decline in refining margins and the gasoline-naphtha delta, which adversely impacted volumes in the Energy segment.

 

Aarti Industries is a manufacturer of specialty chemicals and pharmaceuticals, producing over 100 products, including benzene, toluene, sulfuric acid, and various other specialty chemicals. These chemicals play a critical role in the downstream production of a wide range of industries, including agrochemicals, polymers, additives, surfactants, pigments, and dyes.

Aarti Industries share price history

The company’s stock has underperformed the market year to date as it has fallen 33.8 per cent, while slipping only 15.6 per cent in the last one year. In comparison BSE Sensex has risen 9.8 per cent year to date and 22.3 per cent in a year. 

 

The company has a total market capitalisation of Rs 15,606.45 crore. Aarti Industries shares are trading at a price to earnings multiple of 38.36 times and at an earning per share of Rs 12.38.  

At 10:21 PM; the stock of the company was down 9.85 per cent at Rs 428 per share. By comparison, the BSE Sensex was down by 0.12 per cent at 79,387.60.